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Statistical classi?cation of economic activites
in the European CommunityNACE Rev. 2
KS-RA-07-015-EN-CNACE Rev. 2
Statistical classi?cation of economic activites in the European CommunityMethodologies and
Working papers
ISSN 1977-0375
Statistical classi?cation of economic activites
in the European CommunityNACE Rev. 2
Methodologies and
Working papers
Europe Direct is a service to help you ?nd answers to your questions about the European UnionTheme: General and regional statistics
Collection: Methodologies and working papers
How to obtain EU publications
Our priced publications are available from EU Bookshop (http://bookshop.europa.eu), where you can place an order with the sales agent of your choice. The Publications Office has a worldwide network of sales agents. You can obtain their contact details by sending a fax to (352) 29 29-42758. Eurostat is the Statistical Office of the European Communities. Its mission is to pro- vide the European Union with high-quality statistical information. For that purpose, it gathers and analyses figures from the national statistical offices across Europe and provides comparable and harmonised data for the European Union to use in the defi nition, implementation and analysis of Community policies. Its statistical products and services are also of great value to Europe"s business community, professional organisations, academics, librarians, NGOs, the media and citizens. Eurostat's publications programme consists of several collections: News releasesprovide recent information on the Euro-Indicators and on social, economic, regional, agricultural or environmental topics. Statistical books are larger A4 publications with statistical data and analysis.Pocketbooks are free of charge publications aiming to give users a set of basic figures on a specific topic.
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Data in focus present the most recent statistics with methodological notes. Methodologies and working papersare technical publications for statistical experts working in a particular field. Eurostat publications can be ordered via the EU Bookshop at http://bookshop.euro- pa.eu. All publications are also downloadable free of charge in PDF format from the Eurostat website http://ec.europa.eu/eurostat. Furthermore, Eurostat"s databases are freely available there, as are tables with the most frequently used and demanded short- and long-term indicators. Eurostat has set up with the members of the European statistical system" (ESS) a network of user support centres which exist in nearly all Member States as well as in some EFTA countries. Their mission is to provide help and guidance to Internet users of European statistical data. Contact details for this support network can be found on Eurostat Internet site.EUROSTAT
L-2920 Luxembourg Tel. (352) 43 01-1 website http://ec.europa.eu/eurostat 5Preface
Reliable and comparable international statistics can be produced and made available to business, ?nancial institutions,
governments and all other operators in the international market only if based on common statistical standards.
NACE is the "statistical classi?cation of economic activities in the European Community" 1 and is the subject of legislation at the European Union level 2 , which imposes the use of the classi?cation uniformly within all the Member States.It is a basic element of the international integrated system of economic classi?cations, which is based on classi?cations of
the UN Statistical Commission (UNSTAT), Eurostat as well as national classi?cations; all of them strongly related each to
the others, allowing the comparability of economic statistics produced worldwide by di?erent institutions.
e present NACE Rev. 2, which is the new revised version of the NACE Rev. 1 and of its minor update NACE Rev. 1.1, is
the outcome of a major revision work of the international integrated system of economic classi?cations which took place
between 2000 and 2007. NACE Rev. 2 reects the technological developments and structural changes of the economy,
enabling the modernisation of the Community statistics and contributing, through more comparable and relevant data,
to better economic governance at both Community and national level.Development of NACE Rev. 2 has bene?ted from the work preparing the fourth revision of the United Nations' Inter-
national Standard Industrial Classi?cation of All Economic Activities (ISIC Rev. 4). Representatives from Eurostat and
Member States of the EU played an important role in this work. NACE Rev. 2 has been created based on ISIC Rev. 4 and
adapted to the European circumstances by a working group of experts on statistical classi?cations from the Member
States, candidate Countries as well as EFTA Countries, with the support and guidance of the classi?cation section at
Eurostat.
Beside the classi?cation, this publication contains also the introductory guidelines containing the main concepts, an his-
torical background and the methodological guidelines for understanding and applying NACE Rev. 2 as well as a detailed
description of the di?erent items of the classi?cation.H. Carré
Director General
1NACE is the acronym for "Nomenclature statistique des activités économiques dans la Communauté européenne".
2Council Regulation (EEC) No 3037/90 of 9 October 1990 on the statistical classification of economic activities in the European Community (OJ No L 293, 24.10.1990, p. 1) as amended by Commission
Regulation (EEC) No 761/93 of 24 March 1993 (OJ No L 83, 3.4.1993, p. 1, and corrigendum, OJ No L 159, 11.7.1995, p. 31).
6List of abbreviations
BECClassi?cation by Broad Economic Categories of the United Nations CNCombined Nomenclature - European Classi?cation of GoodsCPAEuropean Classi?cation of Products by Activity
CPCCentral Product Classi?cation of the United NationsEECEuropean Economic Community
EP/CEuropean Parliament and Council
ESAEuropean System of National and Regional AccountsEUEuropean Union
HSHarmonized Commodity Description and Coding System of the World Customs Organization ISICInternational Standard Industrial Classi?cation of all Economic Activities of the United NationsKAUKind of Activity Unit
NACEEuropean Classi?cation of Economic Activities
PRODCOMEuropean System of production statistics for mining and manufacturingRAMONEurostat's online server for metadata
SITCStandard International Trade Classi?cation of the United NationsSNASystem of National Accounts
SPCStatistical Programme Committee
UNUnited Nations
7Table of contents
pagePart I - NACE Introductory Guidelines
..............9Chapter 1: NACE Introduction and background
.....11 1.1 NACE and the integrated system of classi?cations of economic activities and products ...............................13 e international system of economic classi?cations 1.2NACE: scope and characteristics
...................14Statistical classi?cations
..............................14 NACE as the EU classi?cation of economic activitiesScope and limitations of NACE
....................15Structure and coding of NACE
.....................15 1.3.NACE: historical background and legal context
..16From NICE to NACE Rev. 2
.........................16 e NACE Regulations: main features ............17 1.4 ?e revision of NACE ...............................17Chapter 2: NACE de?nitions and principles ........................................................................
..........19 2.1Criteria adopted for developing NACE
............21Criteria for classes
...................................21Criteria for groups and divisions
...................21 2.2 Principal, secondary and ancillary economic activities 2.3De?nitions of statistical units
......................22Chapter 3: Classi?cation rules for activities and units .....................................................................25
3.1Basic classi?cation rules
............................27Value-added substitutes
.............................27 3.2Multiple and integrated activities
.................28 e top-down method ...............................28Changes of the principal activity of the unit
......30Treatment of vertically integrated activities
......30Treatment of horizontally integrated activities
...30 3.3Rules for speci?c activities
..........................30 Activities undertaken on a fee or contract basis and outsourcing of activities Treatment of outputs of outsourced activities in the CPAOn-site installation
..................................32Repair and maintenance
............................32 8 3.4Section-specic rules and denitions ........................................................................
..............32Section A: Agriculture, forestry and ?shing
......32 Section G: Wholesale and retail trade; repair of motor vehicles and motorcycles ....................................32Sections K: Financial and insurance activities and M: Professional, scienti?c and technical activities
............34 Section O: Public administration and defence; compulsory social security Section T: Activities of households as employers; Undi?erentiated goods- and services-producing activities of households for own use ...............35Chapter 4: Relations between NACE Rev. 2 and other classications ..................................................37
4.1Relations with international classications
.......39 e international family of economic and social classi?cations e UN integrated system of classi?cations of activities and productsNACE link to ISIC
...................................41NACE links to other international classi?cations
414.2
Relations with EU classications
..................41Classi?cation of Products by Activity - CPA
......41Combined Nomenclature - CN
.....................42PRODCOM
Main Industrial Groupings - MIGs
................42 Balance of payments: classi?cation for foreign direct investment statistics 4.3Relations with other multinational classications
NAICSANZSIC
Other classi?cations
.................................43 4.4Aggregated structures for national accounts
......43Chapter 5: Changes from NACE Rev. 1.1 to NACE Rev. 2 ..................................................................45
5.1Changes in the structure
............................47 5.2Correspondence tables: scope and use
.............50 Chapter 6: Glossary ........................................................................Part II - Broad Structure of NACE Rev. 2
..........55Part III - Detailed Structure of NACE Rev. 2
......59 Part IV - NACE Rev. 2 - Structure and Explanatory Notes ANNEX I - Regulation (EC) No 1893/2006 of the European Parliament and of the Council .............315ANNEX II - Outsourcing
...............................357 NACE:Introduction
and background chapter 1 part I NACEIntroductory
Guidelines
NACE:Introduction
and background chapter 1 NACE:Introduction
and background 13 1.1 NACE and the integrated system of classications of economic activities and products 1.NACE is the acronym
3 used to designate the various statistical classi?cations of economic activities developed since1970 in the European Union. NACE provides the framework for collecting and presenting a large range of statistical
data according to economic activity in the ?elds of economic statistics (e.g. production, employment, national ac-
counts) and in other statistical domains. 2.Statistics produced on the basis of NACE are comparable at European and, in general, at world level. e use of NACE is mandatory within the European Statistical System.
The international system of economic classi?cations 3.e comparability at world level of statistics produced on the basis of NACE is due to the fact that NACE is part of an integrated system of statistical classi?cations, developed mainly under the auspices of the United Nations Statistical Division. From the European point of view, this system can be represented as follows:
EconomicActivitiesProductsGoods
ISICWorld levelCPC
NACECPA
Nationalversionsof NACENationalversionsof CPA
PRODCOMCN
HSSITC
Nationalversions ofPRODCOMEU level
National
level Is the reference classification. Classifications are linked by the struct ure Is the reference classification. Classifications are linked by conversion tableClassifications are linked by conversion tables
3NACE is derived from the French title "Nomenclature générale des Activités économiques dans les Communautés Européennes" (Statistical classification of economic activities in the European
Communities).
14NACE: Introduction and background
Where:
ISIC 4 is the United Nations" International Standard Industrial Classication of all Economic Activities. CPC 5 is the United Nations" Central Product Classication. HS 6 is the Harmonized Commodity Description and Coding System, managed by the World Customs Or- ganisation. CPA 7 is the European Classication of Products by Activity.Prodcom
8 is the classication of goods used for statistics on industrial production in the EU. CN 9 stands for the Combined Nomenclature, a European classication of goods used for foreign trade statistics. 4.Such an integrated system allows the comparability of statistics produced in dierent statistical domains. As a con-
sequence, for instance, statistics on the production of goods (reported in the EU according to Prodcom surveys)
could be compared with statistics on trade (in the EU produced according to CN). More details on the system and
its components are provided in Chapter 4. 5.NACE is derived from ISIC, in the sense that it is more detailed than ISIC. ISIC and NACE have exactly the same items at the highest levels, where NACE is more detailed at lower levels.
6.In order to ensure international comparability, the denitions and the guidelines established for use of NACE within the EU are consistent with those published in the introduction to ISIC.
1.2NACE: scope and characteristics
Statistical classi?cations
7.All observations that are to be described in terms of statistics require systematic classication. Classications parti-tion the universe of statistical observations according to sets that are as homogeneous as possible with respect to the characteristics of the object of the statistical survey.
8.Statistical classications are characterised by:
a. exhaustive coverage of the observed universe; b.mutually exclusive categories: each element should be classied in only one category of the classication;
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